California Business Owners and Real Estate Investors
A new state law was just passed that could reduce your overall tax bill more than 3%. This update provides insight regarding a big tax break for our clients who own
- Limited partnership interests
- Units in an LLC with multiple owners; or
- S-Corporation shares.
You may know that the deduction for State and Local Taxes (SALT) was limited to $10,000 by the Tax Cuts and Jobs Act passed in 2017. A new California law was just passed that will allow limited partnerships, certain LLCs and S Corporations to pay the California income taxes for their owners. Running the state taxes through the business reduces the income allocated to the owners. This reduction of federally taxable income provides an indirect but almost unlimited deduction to the owners for the payment of California income taxes. Tune in as Director of Wealth Management, Chris Pegg, explains:
Investment advice offered through Stratos Wealth Partners, Ltd, a registered investment advisor; DBA BWM Financial. Stratos Wealth Partners and its affiliates do not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only; and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors before engaging in any transaction.